In a world where new residential architectural designs were finding a room in the real estate market, did the world anticipate that a pandemic was about to come? Could the world ever imagine that COVID-19 would spread like wildfire and create panic in everyone’s mind? Let’s take the construction industry into consideration. No one could ever envision the real estate market to take a U-turn due to an unprecedented impact on the economic supply chain of the world.
Here’s an analysis of the pandemic on the world economy by taking examples of the real estate world. Let’s give it a read.
The Connection between Real Estate Market and China
Ever since the official advice of ‘staying at home’ was imposed through lockdown, it has been affecting the world economy on numerous counts. China is a leading construction and manufacturing giant. However, with Wuhan being the first place to have hit with COVID-19 cases, it has directly affected the real estate and other economic activities in the country.
The most significant allied industries of the construction industry are steel and iron ore. At this point, where the pandemic is taking the lives of thousands each day, stemming from the further spread of coronavirus becomes more important. This is one reason why China has ceased two-third of production lines officially. For the real estate world, limping back to normalcy seems quite a challenge.
Coronavirus Impact on Global Commercial Industry: Boon or Bane?
COVID-19, in all possible ways, has been a great culprit in contributing to a plummeting world economy. However, there are silver linings depicting that the constructional projects in the US that are recently on hold are anticipated to see the light of the day when it gets resumed after some months. The housing markets in Canada and Australia, nevertheless, are anticipated to see a downfall due to reduced economic activities.
All in all, delays in building approvals and growing unemployment scenarios are major causes indicating a slump in the global real estate structure. To speak of Europe, how can one expect the implementation of advancing real estate strategies and overall outcomes, especially when it is losing hundreds and thousands of lives because of this deadly virus?
The Indian construction industry is also taking measures in order to help house seekers choose a property in India in a safe and sound manner. The Government is undergoing simplified methodologies in order to implement liquidity in the system. It is anticipated to lower the credit costs by helping the real estate domain.
Government Measures to Provide Relief to the Construction Universe
The COVID-19-induced fear is playing in the minds of all. In fact, it has engulfed the world and forced it to enter into a recession. However, Governments are taking preventive measures to help the world cope with such a drastic and economically-unstable condition. The Government has implemented strategies and announced relief measures on global means.
Indian Government, in general, has started an initiative as ‘infrastructure’ as an important one among five pillars. Because of sudden disruption caused by COVID-19 epidemic, an extension of 6-months has been offered to the authorities. To improve the cash flow scenarios, the Government has allowed agencies to release guarantees until the extension of the contract. It will have a direct impact on both the infrastructure domain as well as the national economy.
Pandemic: A Challenging Opportunity for the World?
If history is anything to go by, the world will limp back to normalcy no sooner than later. Yes, the pandemic is a challenge and an opportunity too. The world will definitely witness crises over delayed decisions in businesses and reduced demands. However, it will eventually recover. Here’s wishing for a better tomorrow when the world would have no economic crises.